MKP Slams Major South African Banks for Lack of Transformation and Monopoly Practices

The Umkhonto weSizwe Party (MKP) has launched a scathing critique of South Africa’s major banks, accusing them of failing to transform and exploiting their monopoly over the financial system. During a march outside the South African Reserve Bank on Monday, MKP high command member Luther Lebelo singled out Absa, FNB, Nedbank, Standard Bank, and Capitec, labeling them as “untransformed” and “racist.”

Lebelo criticized the banks’ lending practices, claiming they disproportionately disadvantage black business owners. “A black entrepreneur with R1 million in the bank may be denied a R1 million loan, while a white individual with no income but living on a farm can secure a loan to start a business,” he said.

He also accused the major banks of deliberately undermining black-owned financial institutions, citing the collapse of VBS Mutual Bank as an example. “The South African Reserve Bank refused to grant VBS a full banking license, limiting its operations to 25% capacity. After 10 years, they claimed the bank wasn’t profitable and used the Prudential Authority to shut it down,” Lebelo explained.

The MKP has vowed to resist the impending closure of Ithala Bank, which is currently facing liquidation proceedings initiated by the Prudential Authority. “They did this with VBS, forcing black customers to join white-owned banks. Now they want to close Ithala Bank, established in 1958, which still doesn’t have a license. Meanwhile, Capitec, TymeBank, and even Old Mutual have been granted licenses,” Lebelo said.

He accused Finance Minister Enoch Godongwana and President Cyril Ramaphosa of being “messengers of white capital” and pledged that the MKP would fight to reverse decades of economic inequality. “Thirty years of democracy have meant 30 years of poverty for black people. The MKP is here to end that suffering,” Lebelo declared.

Cosatu Joins the Fight Against Austerity Measures

In a separate demonstration on Wednesday, a small group of Cosatu members picketed outside the National Treasury offices in Pretoria to protest the government’s proposed VAT increase and austerity measures. Themba Masuku, Cosatu’s deputy chairperson for the Tshwane cluster, argued that these measures would disproportionately affect workers and the poor.

“As the working class, we are saying our needs must be considered in the ministerial speech and budget,” Masuku said. He proposed taxing the wealthy instead of increasing VAT, emphasizing the need to address South Africa’s high unemployment rate. “How can the government reduce unemployment while implementing austerity measures?” he asked.

Bongani Xezwi, coordinator of the Budget Justice Coalition, echoed Cosatu’s concerns, urging the government to prioritize social spending. “We say no to austerity measures. The government must address unemployment and improve access to healthcare instead of cutting resources for those in need,” Xezwi said.

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